Nano to stake a comeback with electric model

The Tata Nano is making a comeback, with an electric motor under the hood. Tata MotorsBSE 0.94 %, the manufacturer of the car once touted as the cheapest in the world, however, has only a limited role this time.

A Coimbatore-based company, Jayem Automotives, has signed an agreement with Tata Motors to source the body shell of the car, which will then be fitted with an electric motor and power train at its facility in the southern city.

It is expected to travel more than 150 kms on a full charge. An announcement of the vehicle's launch is likely in the next few days.

The company already has orders for 400 electric Nanos from taxi aggregation platform Ola Cabs, the people said.

Autocar India magazine reported the news first. According to the report published on its website Wednesday, the vehicle, to be badged Jayem Neo, will likely be unveiled by Prime Minister Narendra Modi on November 28.

With Nano's volume fast dwindling, questions were raised about continuation of the car's production when Cyrus Mistry was the group chairman. In a letter to Tata Sons directors after his ouster, Mistry had said Tata Motors was unable to take the decision of shutting down the project due to "emotional reasons", a reference to Ratan Tata's involvement in the project.

"Another challenge in shutting down Nano is that it would stop the supply of the Nano gliders (body shells) to an entity that makes electric cars and in which Mr Tata has a stake," he had alleged. Tata Sons had dismissed these allegations.